Google Plans To Establish Drone Manufacturing Facility In Tamil Nadu

Google officials and Tamil Nadu Chief Minister M K Stalin met reportedly to discuss setting up a factory in the southern state to manufacture drones.

The Indian government's efforts to boost the drone industry are showing positive results. 

In 2021, a subsidy was announced for drone manufacturers while in 2022, the Union Information and Broadcasting Minister stated that India aims to become a global leader in drone manufacturing.

Research by Tracxn shows 384 drone start-ups in India, including ideaForge, Newspace Research and Technologies, Garuda Aerospace, Marut Drones, and General Aeronautics. 

A Statista study estimated Indian drone companies to generate revenues of Rs 225 crore in 2024, compared to China's Rs 12,740 crore. 

With Google's entry, there is potential for significant change in this scenario.

The entry of a tech giant is expected to liberalize the ecosystem and generate new jobs. 

Big Tech Monopoly In Drone Manufacturing?

However, startups warn against encouraging a monopoly.

Priyanka Agarwal Chopra, Managing Partner at IIMA Ventures, predicts a multiplier effect and the introduction of newer technologies. She says Google’s entry could have a multiplier effect.

“With the entry of a big company into the picture, newer technologies are expected to be introduced. Also, India will find a place on the global map of the drone industry, opening up new opportunities for existing start-ups,” Chopra told the press.

Some have expressed fears, considering Google’s conflict with some internet-based businesses over its billing policy. 

However, concerns have been expressed regarding Google's conflict with some internet-based businesses over its billing policy.

Some believe that no single company can pose a threat to the entire drone ecosystem due to its diverse applications. 

Vikram Ramasubramanian from Inflection Point Ventures sees potential for more companies to enter the sector, noting increased interest in the potential entry of tech giants.

“Adoption will automatically get a boost if a tech giant ventures into the space because such a company will bring with it an entire ecosystem, from manufacturing technologies to global connections and projects,” Ramasubramanian was found quoting.